Iraq's Oil Ministry has approved an initial agreement with Canadian company Pacific Future Energy for the building of a new refinery in Nassiriyah.
Pacific are expected to utilize the services of SNC-Lavalin, a Montreal based engineering and construction firm which has previous partnerships with Pacific and worked on numerous projects in Iraq previously. It is believed that the Canadian company have beaten off competition from a Chinese consortium to secure the project.
Despite initial approval from current oil minister Jabar al-Luaibi, the deal will have to be approved by the incoming government.
The 150,000 bpd refinery is expected to cost around $5 billion, with the project lasting for up to 25 years creating a potential of 2,000 new jobs.
The new refinery will deliver badly needed additional refining capacity for Iraq and provide an outlet for production from the nearby Nassiriyah oil field
It is also expected that a power station will be built in addition to provide power for both the refinery and the national grid.
Source: Iraq Oil Report